The S&P Global Indonesia Manufacturing PMI rose to 52.5 in June 2023 from May’s 6-month low of 50.3. This was the 22nd straight month of growth in factory activity, with the latest print among the fastest in 2-1/2 years, as new orders expanded after falling slightly in May while output gained solidly and employment rose the most in nine months. Also, buying levels moved in tandem with the growth in new work, which led to increased inventories of inputs. Meantime, foreign demand continued to fall, while backlogs of work climb as manufacturers struggled to fulfill orders in a timely manner. Lead times lengthened after four successive months of improvement, albeit only marginally. On the cost side, input price inflation eased to the lowest since October 2020, with selling prices down for first time in 32 months as some firms offered discounts to drive sales. Finally, sentiment edged up to its highest since April, on hopes of further improvements in business conditions and orders.
